Michael Sorrentino, better known as “The Situation,” made his fortune starring on the reality television show, “Jersey Shore.” And for all six seasons, he earned approximately $150,000 per episode. But now, Sorrentino has found himself in a situation he would rather have avoided.
“The Situation” Failed to Pay Taxes on $9M Income
Sorrentino and his older brother and business manager, Marc Sorrentino, were arrested and indicted early Septtember 24th, on a total of 7 different charges involving tax fraud. The pair was each charged with one count of conspiring to defraud the United States. In addition, Marc was charged with three counts of filing false tax returns for 2010-2012. Mike was charged with two of the same counts for that time period, along with being accused of failing to file a tax return in 2011, when he reportedly earned nearly $2 million. (Yahoo News)
The older brother and manager, Marc Sorrentino faces up to 14 years in prison for his charges, while Mike is facing up to 11 years along with up to $600,000.00 worth of fines. The pair plead not guilty in a Newark, NJ federal court yesterday, and are currently out on a $250,000 bond. Their next court appearance is scheduled for October 6, 2014.
These federal charges stem from the pair allegedly failing to pay taxes on nearly $9 million worth of income earned between 2010 and 2012. The indictment names the two individuals along with several companies reported to be owned by the pair. These companies include MPS Entertainment, Situation Nation, and Situation Productions.
Another Celebrity Caught by the IRS
The income, totaling $8.9 million dollars, reportedly was earned from a variety of sources besides the Jersey Shore. Personal and television appearances, ownership of an online clothing business, the publication of an autobiography and a comic book featuring the Situation as a superhero are just a few. Also, as he grew to be nearly as popular as co-star Snooki, his name was put on DVDs, clothing lines, jewelry, tuxedos, and designer sunglasses.
“The brothers allegedly claimed costly clothes and cars as business expenses and funneled company money into personal accounts,” claimed the U.S. Attorney. He went on to say “The law is absolutely clear: telling the truth to the IRS is not optional.” – Justice.gov
Sorrentino popularized the phrase, “Gym, Tan, Laundry” when he referred to the pre-party ritual of he and his housemates on Jersey Shore. His popularity on the show and his reputation for drinking heavily also lead him to many endorsement deals, including one with Devotion Vodka. He was also well known for showing off his finely toned abdominal muscles, leading him to release a work-out DVD and gain an endorsement with GNC Vitamins. He appeared on Season 11 of “Dancing With The Stars” but was eliminated after just the 4th round.
When asked for a comment on his tax woes, Sorrentino reportedly said, “The situation will sort itself out.”